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“...the board of directors of the company at its meeting held on August 10, 2018 has approved raising of additional funds up to an aggregate amount of ₹ 20,000 crore," Tata Teleservices (Maharashtra) said in a regulatory note.

The fund raising will be done either by issue of securities, instruments etc including redeemable preference shares to promoters on preferential basis, non-convertible debentures or inter corporate deposit or loans from the promoters or other entities.

The parent firm of the company Tata Teleservices (TTSL) has dues of around ₹ 10,000 crore pending to be paid to the telecom department. TTSL is in process of merging its mobile service business with Bharti Airtel and will need to clear dues before the DoT takes merger on record.

TTML posted narrowing of total comprehensive loss to ₹ 454.46 crore for the three months ended 30 June, 2018, from ₹ 681.26 crore in the March quarter and ₹ 506.04 crore during the April-June previous fiscal.

The company, whose accumulated losses have exceeded its paid up capital and reserves, had said in a regulatory filing that it has secured a support letter from the promoters, indicating their willingness to organise for any liquidity shortfall in meeting financial obligations and repayment of debt. TTML has obtained a support letter dated 28 May, 2018 from its promoter indicating that the promoter will take necessary actions to organise for any shortfall in liquidity of the company that may arise to meet its financial obligations and timely repayment of debt.

Tata Teleservices is in discussions to monetise “certain assets", proceeds of which will be used to meet its financial obligations when they fall due.